394. Arkansas Bank & Trust Company (Hope, AR)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: November 17, 1930
Location: Hope, Arkansas (33.667, -93.592)

Metadata

Model: gpt-5-mini
Short Digest: 067f9c8e

Response Measures

Full suspension

Other: Liquidating agent appointed and state banking commissioner assumed proceedings.

Description

The Arkansas Bank & Trust Co. of Hope temporarily suspended payments on Nov 17, 1930 after publicity and withdrawals tied to failures/withdrawals at correspondent/related institutions (Caldwell & Co. / American Exchange Trust Co.). A liquidating agent (state receiver) was appointed Dec 1, 1930 and the bank remained in liquidation thereafter, so the sequence is run → suspension → closure/receivership.

Events (3)

1. November 17, 1930 Run

Cause: Correspondent
Cause Details: Publicity and heavy withdrawals at the American Exchange Trust Co. (Little Rock), a correspondent/related institution, led depositors to withdraw funds from the local bank.
Measures: Board of directors suspended payments under state law for five days (temporary suspension of payments announced).
Newspaper Excerpt: The temporary closing was attributed ... the recent failure of Caldwell Co., followed the American Exchange Trust Co. Little Rock, correspondent for the local bank, made advissuspend ... during which $4,000,000 was withdrawn from that bank.
Source: newspapers

2. November 17, 1930 Suspension

Cause: Correspondent
Cause Details: Directors suspended payments citing runs/withdrawals prompted by failures and heavy withdrawals at the American Exchange Trust Co. and related publicity; suspension invoked the five-day statutory privilege.
Newspaper Excerpt: Under the authorization of Section 717 ... this bank has suspended payment of checks against drawn deposits with the intention of resuming payment within five days. By the order of the BOARD OF OFFICERS ... The temporary closing was attributed ... the recent failure of Caldwell Co., followed the American Exchange Trust Co. Little Rock, correspondent for the local bank.
Source: newspapers

3. December 1, 1930 Receivership

Newspaper Excerpt: Atkins Says His Appointment as liquidating agent for the Arkansas Bank Trust Co., which suspended payment November was Sunday by Walter E. Taylor, state banking commissioner. Claims for deposits should be filed ... the proceedings having been assumed by the state in the person of the banking commissioner and local deputy, Mr. Atkins.
Source: newspapers

Newspaper Articles (7)

1. November 17, 1930 Jonesboro Daily Tribune Jonesboro, AR

Article from Jonesboro Daily Tribune, November 17, 1930

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Article Text

BANKS CLOSED TEMPORARILY STATE CITIES Number of Banks Chain Suspend Business Today In Order to Protect Interest of Depositors. Will Open in Five Days After Precautionary Steps Taken. Thirty-two banks in which B. Banks, Arkansas financier, is interested, temporarily suspended business this morning, with announcements being made to the effect that they would reopen for-business after five days. Capitalists viewed the closing of the banks with little alarm, expressing the belief that the banks are all absolutely solvent and that their temporary closing is for the protection of depositors and to avoid runs that might have resulted from the present panicky condition of the state, Fortunately, no Jonesboro banking interests were in any way connected with any of the banks that closed. according to statements made this morning. The following United Press dis patch tells of the temporary closing of the banks: LITTLE ROCK, Ark., Nov. 17.The following banks in which A. B. Banks company is interested suspended business temporarily this morning: Bank of Altheimer. Altheimer; North Arkansas Bank, Batesville: Bank of Bauxite, Bauxite; Benton Bank and Trust Company, Benton: Arkansas State Bank, Carlisle: Bank of Carthage, Carthage; Farmers Bank, Casa; Bank of Clarendon; Farmers Bank, Dardanelle; Eudora Bank and Trust Company, Eudora: Hampton State Bank, Hampton: Cleburne County Bank, Heber Springs; Merchants and Planters Bank, Henlena; Arkansas Bank and Trust Company, Hope; Bank of Houston, Houston Merchants and Planters Bank, Humphreys, First National Bank, Junction City: Merchants and Farmers Bank, Junction City: Cleveland County Bank; Kingsland, Chicot Trust Company, Lake Village; American Exchange and Trust Company, Little Rock; First State Bank, Osceola: Bank of Pangburn, Pangburn; Perry State Bank, Perry: Merchants and Planters Bank and Trust Company, Pine Bluff: Victoria Bank, Strong: First State Bank, Thornton, Bank of Wabsseka, Wabaseka: Grant County Bank, Sheridan; Exchange Bank and Trust Company, Dermott, Bank of Fordyce, Fordyce; Exchange Bank of Dermott. and Sheridan, clased at noon, due to heavy runs this morning.

2. November 17, 1930 Hope Star Hope, AR

Article from Hope Star, November 17, 1930

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Article Text

Suspension Ordered Monday Arkansas Bank By Bank Closed TemLocal Following Run porarily Little Rock PREVAILS Statement Issued Formal By the Board of Directors Bank & Trust Co., The Arkansas three banking instituof Hope's for business tions, open Monday morning. the doors of the notice posted on banking house said: authorization of Sec"Under the tion 717 of the Crawford Moses Digest this bank has suspended payment drawn deposits with of checks against the intention of resuming payment within By the order of the five days. BOARD OF No Run Hope Officers of the bank said there had the institution, but been publicity attending the the recent failure Caldwell Co., followed the American Exchange run Trust Co. Little Rock, correspondent for the local bank, made advissuspend for the next The board directors issued completo statement, which appears elsewhere on this page today. The 24th statement of the Arkansas Bank Trust Co. showed deposits and loans The bank $100,000. with surplus $50,000 and undivided profits of $16,107.51 September 24. Very little excitement attended the failure to open Monday morning. Not before the banking doors, and these read the posted notice. Panic From Caldwell Failure Public reaction the streets of on Hope Monday morning fidence in the bank and Its officials. The temporary closing was attributed public excitement arising from the inilure of Caldwell noted Southern investment house of Nashville, Tenn., which the spring of 1929 became associated with Banks in certain Arkansas interests. The failure Caldwell Co. November followed last week by the that Mr. Banks and other Little Rock men had the interests sold to Coldwell year and half ago. Notwithstanding the the American change at Little Rock last week, durwhich $4,000,000 was withdrawn from that bank. suspension was termined upon Sunday night, and ultaneously the other banks out the state stopped payment for the next five days. Arkansas law gives any bank the privilege of suspending for five days, nt the end which time the directors may either business announce other permanent plans.

3. November 17, 1930 New Britain Herald New Britain, CT

Article from New Britain Herald, November 17, 1930

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Article Text

THIRTY ARKANSAS BANKS CLOSED 5 DAYS BY ORDERS (Continued From First Page) could have forced the closing of this strong bank." Soon after Caldwell & Company was placed in receivership, Mr. Banks anounced the Caldwell & Company's interest in the American Exchange Trust Company had been bought by Little Rock capitalists. The Pine Bluff bank was the second largest in the group and the Helena institution the third largest Banks was a director and a former president of the bank. The American Exchange Trust Company in Little Rock had deposits of approximately $15,000,000 OD September 24, the date of the last bank call. The Pine Bluff bank on September 24 had deposits of approximately $2,638,000 and the Helena bank at the close of business Saturday had deposits of $726,000. officials said. List of Institutions The banks in which Mr. Banks and assistants are interested and which suspended business today for five days were announced by the company as follows: The bank of Altheimer, Altheimer: North Arkansas Bank. Batesville; Bank of Bauxite, Bauxite; Benton Bank and Trust Company, Benton: Arkansas State Bank, Carlisle; Bank of Carthage, Carthage; Farmers Bank, Casa: Bank of Clarendon, Clarendon: Farmers Bank, Dardanelle: Hampton State Bank, Hamnton: Cleburne County Bank. Heber Springs: Merchants and Planters Bank, Helena; Bank of Houston, Houston: Merchants and Planters Bank, Hunphrey: Cleveland County Bank. Kingsland; Chicot Trust Company, Lake Village: AmericanExchange Trust Company, Little Rock: First State Bank, Morrilton: Arkansas Trust Company, Newport: Bank of Pangburn. Pangburn: Perry State Bank, Perry: Merchants and Planters Bank and Trust Company, Pine Bluff: Bank of Star City, Star City: Victoria Bank, Strong: First State Bank. Stuttgart: Citizens Bank Thornton. and Bank of Wabbaseka Wabbaseka; The Arkansas Bank and Trust Co., Hope: Peoples Bank McRea: and the Endora Bank and Trust Co., Endora. The following banks affiliated with the A. B. Banks and Company remained open for business, the company announced: The Bank of Fordyce and the First National Bank, Fordyce; Bank of Harrisburg, Harrisburg: First National Bank, Mineral Springs: Bank of Stephens, Stephens, and Bank of Waldo, Waldo. Efforts were being made at Junction City to merge the first National Bank and the Merchants and Farmers Bank. and open one of them today, officials said.

4. December 1, 1930 Hope Star Hope, AR

Article from Hope Star, December 1, 1930

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Named Liquidating Agent in Arkansas New Plans For Reorganization Advanced By Depositors CONFLICT DOES Atkins Says His AppointInterfere With Reorganization of Atkins, Hope Appointment and banker as liquidating attorney agent for the Arkansas Bank Trust Co., which suspended payment November was Sunday by Walter E. Taylor, state banking commissioner. Claims for deposits should be filed the at the by depositors, person proceedings having bank, all legal been assumed by the state in the person of the banking commissioner and local deputy, Mr. Atkins. The depositors is to only step required of fill out the blanks available at the Arkansas Bank & Trust Co. office in Hope. Mr. Atkins told The Star Monday morning that his appointment does not prevent hinder any present future plans for reorganizing the Arkansas Bank concern. ApTrust going of the state's agent necpointment essary, he said, in view of the bank's suspension, but does not conflict with plans of stockany reorganization holders or depositors, or both. Plan. Plans for reorganization with new capital structure have not yet been abandoned, The Star learned Monday. Petitions are being circulated among the depositors protesting against the liquidating agent Star that about 400 depositors in an informal manner through Gentry, city attorney Hope and former state senator, in an effort to subscribe the capital stock themselves. The approximate plan, The Star learns on good authority, for depositors holding more than $500 subhalf their deposit in stock in new bank to take over the assets and liabilities of the Arkansas Bank Trust Co. Mr. Gentry told The Star Monday merning that he had been appealed many small depositors to assist formulating reorganization plan the depositors themselves among which would meet with the approval the state banking commissioner and permit bank to reopen. contended by this group that the Arkansas represents many small depositors and small borrowers, pecially in the rural section of Hempstead county, who have need of (Continued On Page Three)

5. January 8, 1931 Washington Telegraph Washington, AR

Article from Washington Telegraph, January 8, 1931

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OF THE MOST IMPORTANT Happenings During The Week At a meeting of the deposit ors of tbe closed Planters Bank at Nashville, Dr. J,S. Hopkins was approved as liquidating agent. It is proposed to organize a new bank for that city to operate in connection with the old bank. It is though that if these plans are carried out the depositors will receive all of their money Automobile license was put on sale by Sheriff John Wilson Thusday. About the same rates prevail on license this year as last A 100 per cent assessment was levied a few days ago against all stockholders of the Arkansas Bank & Trust Co. at Hope, which closed Nov, 17. Assessments not paid before the Hempstead Circuit court term in April will be followed by suits against the stockholders Among tha stock. holders according to the report are the Home Insurance Co. $43,000; A. B. Banks 1,690 R. T, White 24,000, John Barlow 20,000, and others The state fruit and truck experiment farm announce they are to dtstrihute free of charge several thousand pruned grape cuttings among the farmers of South Arkansas. Those interested in grape raising should get in touch with this farm] Moving to the aid of the unemployed the government will spend 724 million dollars on public works during this year, the largest peace-time construction program in its The banks at Salem and history. the largest portion being more than 219 million Eudora which clesed several dollars for highway construc- weeks ago, reopened Friday tion

6. January 16, 1931 Hope Star Hope, AR

Article from Hope Star, January 16, 1931

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10 Pct. Is Likely; 20 Pct. If County Suit Is Defeated Atkins Says County Funds Same Boat With Deposits BANKS PAID Bills Payable Cash Now on Hand per cent dividend to depositors In the closed Arkansas Bank & Trust by March 1-with possible per cent on that date the county loses its garnishment suit for the public indicated Friday statement by Atkins. liquidatagent of the bank. Mr. Atkins said the bank has cash in hand. after paying bills payable. amounting to $70,013.72. But the Hempstead county government had garnish$35,000 in county funds. claiming this as forred item. Exempting this amount. the bank has on hand clear for the depositors the sum of Other Banks Paid Arkansas Bank Trust Co. has retired all bills payable. amounting Mr. Atkins said. or this, $30,000 was paid to the change Trust company Little Rocksevering the last connection between and Little Rock both of which are closed. The other $29,000 bill payable was due the arkana National Bank. and has been paid. Mr. Atkins attacked the validity the coounty government's claim preference over depositors. He believes entire $70,013.72 cash on hand will eventually be available depositors. the contention of the State Banking Mr. Atkins said. "that the county government in the same position with regard funds the private depositor. The state has $70.000 on denosit here. but hasn't filed any suit. The state regards itself being the boat the private depositor: and contention that the better off than the state.' County Claims Preference explained that the county funds deposit the Bank Trust Co. had been that bank with deposited in the Citizens National and First National banks of this city. When the Bank Trust Co. failed November Monday the the Citizens and First National banks were attached suit brought In behalf garnishment by Miss Middlethe county to prevent these deposits brooks, to the liquidating agent returned bank. Mr. Atkins the Arkansas in behalf claiming these redeposits of the closed bank. the depositors uncertainty prevailed among Some to the proper procedure attorneys the in profor county tecting its The county and bonds. being understate Home Accident comwritten by the along with other which failed pany. enterprises of Banks Co., the worthless. The later bonds were by attorneys for the county govtempt ernment to claim the public deposit proferred Item disputed by the Banking Department and State various agents in charge of banks that closed. In his statement Friday Mr. Atkins went say that certain stockholdhave made payments on their stock and suit are being filed Friday againt those who have neither paid nor secured their assessments.

7. June 13, 1931 Hope Star Hope, AR

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County Depository Before Supreme Ex- appeal county from decision holding the county's deposit the closed ArkanBank Trust Co. at Hope to be common claim, was submitted to the Arkansas Supreme Court Monday and argued orally. decison expected next Monday, June County's attorneys contended the county depository preferred claim, and lay claim to $34,000 cash held by W. Atkins, liquidating agent, this amount of the bank's funds having garnished by the county immediately after the bank's pension of payment November last.